Pure Storage (PSTG) closed at $65.70 in the latest trading session, marking a -4.21% move from the prior day. This change lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%.
The data storage company's shares have seen a decrease of 6.87% over the last month, not keeping up with the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of Pure Storage in its upcoming release. In that report, analysts expect Pure Storage to post earnings of $0.65 per share. This would mark year-over-year growth of 44.44%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.03 billion, indicating a 17.27% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.95 per share and revenue of $3.63 billion, which would represent changes of +15.38% and +14.73%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Pure Storage. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.63% rise in the Zacks Consensus EPS estimate. Pure Storage is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Pure Storage is currently being traded at a Forward P/E ratio of 35.16. This valuation marks a premium compared to its industry average Forward P/E of 20.17.
We can additionally observe that PSTG currently boasts a PEG ratio of 2.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Pure Storage, Inc. (PSTG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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